NovaBay® Pharmaceuticals, Inc. (NYSE MKT: NBY), a biopharmaceutical company focusing on commercializing its prescription Avenova ® lid and lash hygiene product for the domestic eye care market, reports financial results for the three and nine months ended September 30, 2016, and provides a business update.

"This is an exceptional time at NovaBay as we achieved yet another quarter of record Avenova sales, growing 176% over the third quarter of 2015 and up 20% from the second quarter of 2016, and putting us on an estimated annualized run rate of $12 million," said Mark M. Sieczkarek, NovaBay's President and CEO. "Importantly, 68% of Avenova sales came from the higher-margin prescription ophthalmology channel. This is a 25% increase in prescription sales from the second quarter as we continue to execute on our channel strategy.

"This positive change in sales channel mix contributed to the gross margin on Avenova product sales expanding to 88%. We reduced our adjusted use of cash from operations from $5.8 million for the fourth quarter of last year when we implemented a restructuring to $1.2 million for the third quarter of 2016," he added. "All in all, we believe we are well on our way to achieving our goal of positive adjusted cash flow from operations in December 2016.

"Importantly, during the quarter and with the support of our investors we implemented a warrant exercise that boosted our cash position to $9.4 million, the highest level in three years. The additional funds were essential to keeping our listing on the NYSE MKT exchange, which allows us to maintain greater visibility with the investment community. We expect to use these additional funds to support the continued growth of our commercial activities and drive Avenova sales in this largely untapped market of approximately 41 million Americans."

NovaBay defines adjusted cash flow from operations as GAAP cash flow from operations less changes in operating assets and liabilities.